235.5 -4.25 (-1.81%) Buy

Waiting to invest in SHARIABEES? Look for alternatives because it ranked worse than it's peers

13 min read

RELIANCE ETF SHARIAH BEES ranked among the worst performers today. It delivered -1.81% to close at 235.5. It's recent 5 day performance has been -0.15%, +1.09%, 0.0%, -0.17% and -0.67%.

[Themes containing SHARIABEES]

SHARIABEES showed a flat trend over the last 3 months. During this period SHARIABEES delivered +0.99% and saw a maximum drawdown of -7.46%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in SHARIABEES till volatility reduces and a clear trend emerges.


SHARIABEES has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 12 Feb, 2016 to 23 Aug, 2018. Over the last 3 years and 14 days, SHARIABEES underperformed the NIFTY-50 index on 50% days. Which indicates that on days SHARIABEES underperforms the NIFTY-50 index, it's performance is marginally worse than on the days it outperforms the NIFTY-50 index.

During the last three months SHARIABEES delivered losses on 57% days. However, it still managed to end this period in a profit. It's best return during this period (of +5.71%) was on Monday, 7 Jan, 2019. While it's worst loss in the same period (of -5.25%) was on Tuesday, 8 Jan, 2019. The longest stort-term trends during this period were 5 profitable and losing days. The bullish trend (which returned +4.72%) started on 11 Dec, 2018 and went on till 17 Dec, 2018 while the bearish trend (which returned -6.72%) started on 8 Jan, 2019 and went on till 14 Jan, 2019.

The last 12 months saw SHARIABEES's investors making profits in 7 months and incurring losses in 5 months. During the last year, SHARIABEES delivered profits in more months than NIFTY-50 index. SHARIABEES was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Feb 2018, returned -6.67% compared to -6.42% returned by NIFTY-50 index in Sep 2018. SHARIABEES and NIFTY-50 index, both had periods of 3 consecutive profitable months.

I will never be in the stock market. It's just gambling. I'm a gambler, but I'll gamble on the practicality of things.
-- Jeremy Renner

SHARIABEES is currently seeing overall fall in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in SHARIABEES's volatility from 23 Oct, 2018 to 19 Dec, 2018. While there was a significant fall in the NIFTY-50 index's volatility from 31 Oct, 2018 to 5 Dec, 2018.

Advanced/professional short-term investors should note that SHARIABEES has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

SHARIABEES has more chance of extreme outcomes than the NIFTY-50 index. Therefore, SHARIABEES must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than SHARIABEES.

Based on your interest in SHARIABEES you may find it interesting to know that ~CHEMICALS and BAJFINANCE have both shown remarkable performance and deserve to be on every investors' watchlist.

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